Your employer contributed $1,000 which should show up in Box 12 of your W-2 with a code W. This will automatically carry over into the system. If you made an additional out-of-pocket contribution, this can be entered into TurboTax following these steps:
- Enter your W-2 with the Code W in Box 12.
- This should have opened an area on your tax return for HSAs. If you do not see it, go to Federal > Wages & Income > Less Common Income > 1099-SA, HSA, MSA and click Start/Revisit.
- Select HSA.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
- Assuming you did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. Enter the additional contributions you made in the Any contributions you personally made box.
- Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen.
Depending on your age and whether your HSA is only for yourself or family coverage, TurboTax will determine if you exceeded your contribution limit as well as give you a deduction for any out-of-pocket contribution.
If you contributed through your work, that amount should be included in the amount that is in Box 12 of your W-2 and you already received the tax benefit from that contribution because it was contributed using pre-tax dollars.
